The platform, StanChart is launching, will allow trading of major digital currencies including Ethereum and Bitcoin
Standard Chartered Plc (LSE: STAN) has decided to develop a platform for trading and brokerage of crypto assets. The bank has mentioned that the platform will be launched in Europe and Britain and will target well-established clients. As a result, this step has created and marked contrast with the rival of StanChart – HSBC.
This whole initiative was taken after some days when their huge competitor HSBC Holdings Plc stated that it would not move in the direction of this craze for cryptocurrency. Only a few days back, the CEO of HSBC, Noel Quinn, stated that their bank is not planning on initiating a trading platform for any of the cryptocurrencies. Moreover, the policy of HSBC was also changed, which now does not allow users to keep a hold on public companies’ stocks which are more towards the crypto services.
This new trading platform is supposed to be established with a joint business venture between SC Ventures and BC Technology Group. While SC Ventures is the innovative arm of the bank, BC Technology Group is the one that manages and operates the Hong Kong cryptocurrency licensed exchange OSL, which is the first licensed platform.
According to one of the statements of the bank, the main target of StanChart is the European market. This is so because with this market it is going to be easy for the counterparties which trade in digital assets or bitcoins to connect with the established investors.
One of the members of SC Ventures Alex Manson said that they have a well-built faith in digital assets that they will stay and in the future will become a high asset class.
This new partnership of the bank is going to be based on and held in the United Kingdom. The platform, they are launching, will allow trading in between the digital currencies that include Ethereum and Bitcoin as well. It is expected that in the fourth quarter, the platform will be opened for business.
Move of StanChart towards Crypto
The data of Standard Chartered shows that the entire volume of exchange on the major trades has an average of more than $4 billion in a day. This data has also depicted that all crypto assets have reported over $1 Trillion. With the help of trading and initiating this platform, StanChart has a motive to get themselves a position in this highly growing market.
StanChart has already made its move into this market in the month of December. At this time, they initiated Zodia Custody which is a well-established custody service, and they did this by collaborating with Northern Trust. Also, in July last year, they got hold of one of the providers of blockchain technology, which is Metaco.